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NEW YORK CITY, Feb. 5, 2013 /CNW/ -In connection with the previously announced closing of the financing
transaction with United Silver Corp. (the "Company") pursuant to which
a wholly owned subsidiary of Hale Capital Partners ("Hale") acquired a
convertible note ("Convertible Note") in the principal amount of Cdn
$6,332,760 (being the Canadian equivalent of US$6,300,000, based on the
Bank of Canada noon rate on January 31, 2012) and 5,040,000 common
share purchase warrants (the "Warrants"), the Company has elected to
pay its interest payments in kind which adds an additional Cdn $534,566
to the outstanding principal amount of the Convertible Note, which
additional amount Hale is entitled to convert at any time into an
additional 2,456,391 common shares ("Common Shares") of the Company,
subject to TSX approval as indicated below.

Pursuant to the terms of the Convertible Note, the Company has the right
to elect to pay (provided that the Company has satisfied certain
conditions set out in the Convertible Note) any quarterly interest
payment by adding the amount of such accrued and unpaid interest to the
principal amount of the Convertible Note then outstanding ("PIK
Interest"). Hale has the right at any time to convert any or all of the
PIK Interest into Common Shares of the Company. The conversion price
with respect to PIK Interest will be an amount equal to the "market
price" (as defined in the Toronto Stock Exchange Manual) on the
applicable interest payment date, subject to the approval of the
Toronto Stock Exchange in each instance.

Pursuant to the Company's right to elect to pay any quarterly interest
payment by adding the amount of such accrued and unpaid interest to the
principal amount of the Convertible Note then outstanding (subject to
certain conditions set out in the Convertible Note being satisfied),
the Company elected to add the amount of accrued and unpaid interest
due on May 1, 2012, August 1, 2012, November 1, 2012 and February 1,
2013 to the principal amount of the Convertible Note then outstanding,
which resulted in an aggregate of Cdn $534,566 added to the principal
amount of the Convertible Note (the "PIK Interest Amount"). If the PIK
Interest Amount is fully converted, Hale would hold an additional
2,456,391 Common Shares of the Company or an additional 2.58% of the
total number of issued and outstanding Common Shares of the Company.
The TSX has approved the May 1, 2012, August 1, 2012 and November 1,
2012 PIK interest payments and the listing of the Common Shares
issuable upon conversion thereof. The February 1, 2013 PIK interest
payment and the Common Shares issuable upon conversion thereof is
subject to approval by the TSX. Hale will own and control the
additional Common Shares issuable upon conversion of the PIK Interest
Amount.

If the principal amount of the Convertible Note (including the PIK
Interest Amount) is fully converted and all of the Warrants are
exercised, Hale would hold 20,096,391 or 21.1% of the total number of
issued and outstanding Common Shares of the Company.

Hale has filed an early warning report on SEDAR. A copy of the report
may be obtained by contacting Jordan Jasser at (212) 751.8802.

Hale may or may not purchase or sell securities of the Company in the
future on the open market or in private transactions, depending on
market conditions and other factors material to Hale's investment
decisions and reserves the right to dispose of any or all of its
securities in the open market or otherwise, at any time and from time
to time and to engage in hedging or similar transactions with respect
to the securities.

ABOUT HALE CAPITAL PARTNERS

Based in New York City, Hale Capital Partners has established itself as
a leading private equity firm focused on strategic investments in
public companies and their subsidiaries. Hale Capital Partners' team
is comprised of seasoned private equity veterans and entrepreneurs, who
bring not only deep domain expertise but also hands-on operating
experience to help built highly successful companies. Hale Capital
Partners' mining portfolio spans all stages of mine development from
exploration to commercial production.